Bit Digital Moves All 280 BTC to Ethereum Worth $172 Million

Bit Digital convert from BTC to ETH ?

Bit Digital used $172 million from the stock offering to accumulate 100,603 ETH and sell 280 BTC, worth about $28 million. According to an announcement made on July 7, 2025, the company has quadrupled its ETH holdings, from 24,434 ETH to a value of about $254.8 million as of March 31, 2025.

According to CEO Sam Tabar, this move not only completely eliminates the risks associated with Bitcoin, but also positions Bit Digital as the leading “Ethereum treasury platform” in the mass market. Thanks to its programmability, growing adoption of Ethereum, and its staking yield model, Bit Digital believes in its ability to “rewrite the entire financial system.”

With staking yields ranging from 4% to 6.5% annually, Bit Digital can generate a steady stream of passive income without the high electricity costs of Bitcoin mining. But why did Bit Digital decide to put all its bets on Ethereum instead of giving up on the world's largest digital asset, Bitcoin?

Where does the impact come from?

Several strategic and market factors influenced Bit Digital's decision. First, after the recent halving event, the Bitcoin mining environment has become more hostile, causing miners' profits to drop significantly due to the halving of block rewards.

According to CEO Sam Tabar, Ethereum offers a “cleaner” economic model through staking because it has stable yields and does not require as much electricity as Bitcoin mining. This is especially attractive when operating costs are high and mining assets, such as mining machines, are rapidly depreciating.

Second, Ethereum is considered the leading platform for both real-world asset (RWA) tokenization and decentralized finance (DeFi). Over $4.6 billion in RWA assets have been recorded on the Ethereum blockchain, accounting for 90% of the market. Tabar emphasized that Ethereum “catches up with real economic activity” through asset tokenization and stablecoin transactions, providing higher long-term value than Bitcoin, which does not have similar mechanisms.

Additionally, the fact that Bit Digital operates a staking infrastructure and starts accumulating ETH from 2022 shows that this is a well-planned strategy rather than an immediate decision.

Portfolio Transformation Strategy

By switching to Ethereum, Bit Digital gains a number of unique advantages. First, staking ETH allows the company to generate a steady yield of 4% to 6.5% per year, turning its treasury into a “self-funding engine,” as Ethereum developer Eric Conner notes. This reduces Bit Digital’s reliance on mining revenue and creates cash flow to pay for operating expenses or buy more ETH.

Second , this strategy positions Bit Digital as a pioneer in the trend of public companies accumulating ETH as treasury assets.

According to data from The Block, Bit Digital is now one of the largest public ETH holders, alongside names like SharpLink ($462.9 million ETH) and BitMine (which is raising $250 million to buy ETH). The move also reflects a broader trend, with institutional investors pouring money into Ethereum for 11 straight weeks, while Bitcoin inflows have dropped from $1.5 billion to $790 million per week. But is there any risk to this decision?

Disclaimer: The information presented in this article is the author's personal opinion on the cryptocurrency field. It is not intended to be financial or investment advice. Any investment decision should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in the article do not represent the official position of the platform. We recommend that readers conduct their own research and consult with a professional before making any investment decisions.

Compiled and analyzed by HCCVenture

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